The longer you are in your home, the more equity you build. Have you ever heard the term "starter home?" Short term equity goals are usually about staying in a home long enough to build enough equity to move into your dream home. But what about long term goals? When we talk about long term equity goals we are referring to how your home's equity can affect your retirement. Whether you’ve just retired or you’re thinking about retirement, you may be considering your options and trying to picture a whole new stage of your life. One thing worth considering is whether or not your current home will suit your new lifestyle.
Long Term Home Equity Goals?
So, you're getting ready for retirement, but your home doesn’t have the features or benefits you need. If you don't have a lot of money saved, that doesn't mean you can't move and get the house that you need. In fact, you are probably in a better position to move than you ever before. This is all due to the equity you've built while owning your home. According to the National Association of Realtors, "A homeowner who purchased a typical home five years ago would have gained $125,300 from price appreciation alone.” CoreLogic, a home value estimation website, reports that the average homeowner in the United States gained roughly $64,000 in equity due to home price appreciation.
Though mortgage rates have only gotten higher, this is actually good news for you. That equity is your ticket to your homeownership goals. In retirement, some choose to downsize while others yearn to move closer to loved ones. You may even have a dream destination in mind, a place where you always wanted to live. Obstacles that once seemed insurmountable may now be easier to overcome. It goes without saying, retirement is an extremely big step to take. Buying or selling a home is also a huge step to take no matter how old you are. Talk to your real estate agent today about how your equity can help you attain your long term life goals.